US Expat Tax CPA for Americans Living in Greece
Living in Greece does not end your US tax obligations. As a US citizen or green card holder, you continue to file a US tax return and report your worldwide income even after moving abroad.
Greece has become a popular choice for Americans, especially retirees and remote workers, in part because of its special tax regimes for new residents. Those regimes can lower your Greek tax a great deal. They do not lower your US tax, and that is where many Americans in Greece get surprised.
Who This Page Is For
Egan Tax works with Americans living in Greece on the US side of their international tax situation.
I work directly with clients on issues including the Foreign Tax Credit, Foreign Earned Income Exclusion, the Greek special tax regimes, FBAR, Form 8938, PFICs, retirement income, Greek and US rental property, state tax residency, and other US international tax matters.
When an issue depends on Greek law, I coordinate with your Greek accountant (logistis) rather than trying to replace them.
Key Tax Issues for Americans in Greece
Foreign Tax Credit or Foreign Earned Income Exclusion
Americans living in Greece can use the Foreign Tax Credit, the Foreign Earned Income Exclusion, or in some situations both for different types of income.
The right choice depends on how much Greek tax you pay.
Greek income tax rates on ordinary employment and business income reach 44% at higher incomes, which is above US federal rates for most people. In those situations, the Foreign Tax Credit eliminates the US tax on those earnings, builds credits you can carry forward, and keeps your earnings eligible for IRA contributions and the refundable child tax credit.
The calculation is different if your Greek tax is low, including under the 50% income exemption. Then the Foreign Earned Income Exclusion, which can exclude up to $132,900 of foreign earned income for 2026, often works better.
If you claim the exclusion and later revoke it, you cannot claim it again for five years without IRS consent.
I calculate the return both ways and look beyond the current tax year before recommending an approach.
The US Greece Tax Treaty
The US and Greece have an income tax treaty, but it dates to 1950 and offers Americans living in Greece very little. Like every US treaty, it keeps the right of the United States to tax its own citizens. In practice, the Foreign Tax Credit and the Foreign Earned Income Exclusion do most of the work of avoiding double tax.
Social Security and the Totalization Agreement
The US and Greece have a Social Security totalization agreement.
If you work for a Greek employer, your wages are covered by the Greek system (EFKA) and are not subject to US Social Security tax. If a US employer sends you to Greece for five years or less, you generally stay in the US system and should have a certificate of coverage from the US Social Security Administration.
If you are self employed and living in Greece, the agreement assigns you to the Greek system and exempts you from US self employment tax. Keep a certificate of coverage from EFKA to support that on your US return. The Foreign Earned Income Exclusion does not reduce US self employment tax, so this exemption matters.
The agreement also lets each country count your periods of coverage in the other when determining eligibility for benefits.
FBAR and Form 8938
Your Greek bank and investment accounts are foreign accounts for US reporting purposes.
The FBAR applies when the combined maximum value of your foreign financial accounts exceeds $10,000 at any point during the year.
Form 8938 has separate thresholds. For taxpayers living abroad, it is required when specified foreign financial assets exceed $200,000 at year end or $300,000 at any time during the year for single filers, and $400,000 at year end or $600,000 at any time for married couples filing jointly.
Greek Mutual Funds and PFICs
For US tax purposes, Greek and other European mutual funds and ETFs are treated as Passive Foreign Investment Companies (PFICs).
PFICs are reported on Form 8621. Without an election, gains and certain distributions are taxed at the highest ordinary rate plus an interest charge.
A Greek investment product your bank recommends can look completely ordinary and still create a significant US reporting obligation. Talk to me before you buy, not after.
The Greek Special Tax Regimes
Greece offers three special regimes for people who move their tax residence there. Eligibility, application deadlines and the details of each regime are Greek law, and your Greek accountant should confirm what applies to you. The US side is where I come in.
The 7% Pensioner Regime (Article 5B)
Pensioners who move to Greece can elect a flat 7% Greek tax on all of their foreign source income for up to 15 years.
For Americans, this is usually the most attractive regime, but it does not change your US tax. Your US pension, IRA and 401(k) distributions, and Social Security remain taxable on your US return. The 7% Greek tax is creditable, but it is usually far less than the US tax on the same income, so most of the US tax is still owed.
The regime makes the Greek side simple and inexpensive. It does not make the US side go away.
The 50% Income Exemption (Article 5C)
New residents who take up employment or self employment in Greece can exempt 50% of that Greek income from Greek income tax for up to seven years.
Because your Greek tax is cut in half, it may no longer cover the US tax on your earnings. That often makes the Foreign Earned Income Exclusion the better choice during the regime, and the answer can change when the regime ends.
The Non Dom Regime (Article 5A)
The non dom regime replaces Greek tax on your foreign source income with a fixed annual payment of €100,000, and it requires a significant investment in Greece.
For Americans, the US still taxes all of that income. A fixed payment that does not depend on your income is unlikely to qualify for the Foreign Tax Credit, so plan on the US tax being owed in full. Run the US numbers before making this election.
Retirement Income
The US continues to tax its citizens on pensions, IRA and 401(k) distributions, and Social Security.
Traditional IRAs and 401(k)s keep their US deferral after you move.
Roth IRA distributions that are tax free in the US may not be tax free in Greece. Your Greek accountant should confirm how Greece treats them, including under the 7% regime.
Greek Property and US Rental Property
Buying Property in Greece
Many Americans buy Greek property, including through the Golden Visa program. A residence permit does not by itself make you a Greek tax resident, and it does not change anything on your US return.
If you rent out Greek property, the rental income is reported on your US return each year. Foreign residential rental property is depreciated over 30 years for US purposes, and the Greek income tax on the rent is creditable. The Greek annual property tax (ENFIA) is a tax on property value and not on income, so it is not creditable, although it can be deductible against rental income.
When you sell, the gain is taxable on your US return, measured in US dollars. Exchange rate movement between purchase and sale can create a US gain even when you made nothing in euros.
US Rental Property
Rental income from US property remains subject to US federal tax, and the state where the property is located will usually require a nonresident return.
What I Handle for Americans in Greece
I prepare US returns for Americans living in Greece, including the Foreign Tax Credit and Foreign Earned Income Exclusion, FBAR and Form 8938, Form 8621 for Greek and European funds, Greek and US rental property, US retirement income under the Greek special regimes, totalization agreement positions for the self employed, state tax residency when you leave the US, and the Streamlined Filing Compliance Procedures if you are behind.
Frequently Asked Questions
Do I still have to file a US tax return if I live in Greece?
Yes. US citizens and green card holders continue to file US tax returns and report their worldwide income, even when they live in Greece and pay Greek tax.
If I use the 7% pensioner regime, do I still owe US tax on my pension and Social Security?
Yes. The 7% regime only affects your Greek tax. Your pension, IRA distributions and Social Security remain taxable on your US return, and the 7% Greek tax credits against only part of the US tax. For most retirees, the US tax ends up being the larger bill.
Should I use the Foreign Tax Credit or the Foreign Earned Income Exclusion in Greece?
If you pay ordinary Greek income tax on a full salary, usually the Foreign Tax Credit. If you are under the 50% income exemption, the exclusion often works better because the Greek tax is too low to cover the US tax.
I calculate both and consider the longer term consequences, because revoking the exclusion bars you from claiming it again for five years.
Is the non dom regime worth it for an American?
Usually not on tax grounds alone. You still pay US tax on your worldwide income, and the €100,000 annual payment is unlikely to be creditable against it. It can make sense for other reasons, but look at the US and Greek numbers together before electing.
I work remotely for a US company from Greece. Is my salary foreign earned income?
Yes. Wages are sourced where the services are physically performed. If you do the work while physically in Greece, the wages are foreign earned income for US tax purposes even if your employer is a US company and pays you into a US bank account.
I am self employed in Greece. Do I owe US self employment tax?
No, as long as you are covered by the Greek system. The US Greece totalization agreement assigns self employed residents of Greece to Greek coverage and exempts them from US self employment tax.
Keep a certificate of coverage from EFKA to support the exemption.
Does a Greek Golden Visa change my US taxes?
No. The visa is an immigration status. What matters for US tax is the income the property produces and the gain when you sell it, and both are reported on your US return.
I am behind on my US filings. What can I do?
Most Americans abroad who fell behind without realizing they had to file can use the Streamlined Foreign Offshore Procedures.
The program involves three years of US tax returns and six years of FBARs, with no penalties for qualifying taxpayers.
Do I need to report my Greek bank accounts to the United States?
Yes, if your Greek and other non US accounts together exceeded $10,000 at any point during the year, even for one day. That is the FBAR, and it is filed separately from your tax return.
Form 8938 applies at higher thresholds. For taxpayers living abroad, those start at $200,000 at year end for single filers and $400,000 for married couples filing jointly.
Related US International Tax Resources
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